Alibaba Logistics Subsidiary Eyes Upto $2 Billion IPO In Hong Kong: Report
Cainiao Network's IPO plan comes after Alibaba flagged in late March it would split its business into six units and that most of them would explore capital raisings or market debuts to help fund growth
Alibaba's logistics subsidiary aims to raise up to $2 billion via a listing in Hong Kong likely early next year, citing sources privy to the development news agency Reuters reported. This IPO can bolster hopes for a capital markets revival in the Asian financial hub, according to the report.
Cainiao Network Technology's initial public offering (IPO) plan comes after Alibaba flagged that it would split its business into six units and that most of them would explore capital raisings or market debuts to help fund future growth. Cainiao, which has started work on the IPO, is looking to raise between $1 billion and $2 billion in Hong Kong, according to three sources. They declined to be named because the listing deliberations are private. The planned IPO, the size of which has not been reported before, is likely to be launched in early 2024, two of the sources said.
The sources cautioned that the plans are not finalised yet and remain subject to changes. Cainiao said it would not comment on market speculation. Alibaba did not respond to Reuters request for comment.
Meanwhile, Alibaba Group Holding Limited in late March announced to be split up into six major business units to unlock “the value of Alibaba Group’s various businesses.” The company in a SEC filing said that the new organisational and governance structure will empower businesses to become more agile, enhance decision making, and enable faster responses to market changes.
Alibaba’s six major business groups will include the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group.
The company said each to be independently managed by its own chief executive officer and board of directors. However, Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group, which will follow a holding company management model.
Top Headlines
